EUR/JPY at new lowest level, at price 124.58. But now yen Weakened, Global Stocks Little Improved. Yen movement is currently very sensitive to movements in the stock market, especially the Asian zone. Decline in global stock markets, especially Asia zone the last few weeks has made the status of yen as safe-haven currency back sticking out. Wall street stock early this morning through the strengthening and Asian markets this morning a little too strong, it gives support to the weakening yen.
Previously, the BoJ (Bank of Japan) at the end of January 2010 has been declared yesterday that they were ready to intervene if the yen strengthening of the market to move outside the normal limits, where the market through a weakening yen responding. The stronger yen is currently only going to exacerbate the situation. Prime Minister Yukio Hatoyama also have parliamentary approval to start implementing a new stimulus package of 7.2 trillion yen on January 28 and to counter the threat of the strengthening Yen and deflation that still haunt the Japanese economy.
Chart EUR/JPY on M30
The technical EUR/JPY already passed oversell level, my advice for long term buy EUR/JPY.
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